Your firm, Flyboy, Inc., is a successful U.S. manufacturer of aircraft. Flyboy would like to expand its market to Pamonia, a small, oil-rich kingdom that was once an Italian colony. The principal purchaser of aircraft in Pamonia is the government, although some private families have the resources to purchase the product. The same private families are, not coincidentally, also the nobility of the Pamonian kingdom. For a new entrant like Flyboy, breaking into the market without a local representative is not possible. You are also aware that local custom includes grease payments and lavish gifts to customers in Pamonia.

2. Describe the arrangements into which you would enter with your Pamonian agent.

3. Evaluate the possibility of using an Italian firm as your distributor in Pamonia. What would be the FCPA implications if Flyboy simply delivered the aircraft FOB Pamonia and had no involvement in marketing? What implications would this have for Flyboys profit margin?